Luxury apartments bring high rents to Woodward Avenue

Peter Noonan stands in front of the Woodward, a luxury apartment and retail development going up right along the commercial strip of Woodward Avenue in Royal Oak. The apartments will rent for $6,800 a month and have access to a rooftop deck.(Photo: Kirthmon F. Dozier, Detroit Free Press)Buy Photo

Rising above its neighbors — a Midas auto shop to the north and a scuba store to the south — the Woodward luxury apartment building cuts a bold image in cool grays with soaring floor-to-ceiling windows facing Woodward Avenue in Royal Oak.

When complete in March, the development will be home to two 3,500-square-foot second-floor apartments and a rooftop deck, for $6,800 a month, making them two of the largest and most luxurious apartments on the local market, said Peter Noonan, a broker for the project.

And if that rent for a view of an eight-lane highway on a commercial strip seems high, it may be time to think again about how much people are willing to pay to live luxe in southeast Oakland County.

“The market doesn’t lie and we’re seeing more and more interest from developers to bring luxury rentals to southeast Oakland County. I think we are at the very beginning of this trend," said Todd Fenton, economic development manager for the City of Royal Oak.

The growing demand from well-paid workers, empty nesters and retirees who want high-end finishes without the hassle of homeownership is clear — from the 245-unit Griffin going up at I-696 and Woodward in Royal Oak by Singh Development to the Greenleaf Residencesdevelopment at Maple and Woodward in Birmingham, also a property Noonan was involved in.

All five apartments on the top two floors at Greenleaf, which debuted in 2011, are rented out for $15,000 a month and offer features including custom marble baths, Sub-Zero and Wolf appliances, large outdoor terraces and designs that reflect the work of famous architects Eliel Saarinen and Minoru Yamasaki, said Noonan, vice president of Bailey Schmidt Inc. real estate firm in Birmingham.

At $6,800 a month, the rent at the Woodward development is practically a steal, he said.

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Once complete, the 3,500-square-foot apartments at the Woodward will have high-end features including plaster ceilings, custom kitchen cabinetry and a rooftop deck.(Photo: Kirthmon F. Dozier, Detroit Free Press)

“We like to say we are everything luxury that Birmingham is, but at half the price,” he said of the Woodward. Noonan admits the Woodward's location doesn't offer the walkability of downtown Birmingham like Greenleaf's does, but he points out there are only two apartments available and he expects they may lure tenants like athletes with numerous homes or an art collector looking for big display space.

The three-bedroom, three-and-a-half bath units have 14-foot ceilings in the main living areas and expansive views of Woodward Avenue with tinted windows designed for privacy. Block walls and glass plates are expected to mute the sound of traffic — and an 1,800-square-foot rooftop deck with a heated shelter will offer near-360-degree views.

A medical practice and retail spaces will be on the first floor.

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The view looking south along Woodward Avenue from the roof of the Woodward, a new luxury apartment and retail development tucked between a Midas and a scuba shop in Royal Oak.(Photo: Kirthmon F. Dozier, Detroit Free Press)

Tenants will have covered parking spots but no garage; the city did not allow one, Noonan said. He said residential neighbors were consulted to ensure harmony and developers even matched a portion of the parking lot's two-tone brick and limestone wall to the red brick of an adjacent home.

“No one haddone a mid-block, high-end apartment on Woodward or really any luxury apartment on Woodward between Birmingham and Royal Oak," Noonan said of the Woodward's inception.

The Griffin, another luxury apartment development along Woodward Avenue, at I-696, is expected to open in 2020 and offer amenities including a pet spa, swimming pool and bicycle repair shop. Rent for a 3-bedroom at the Griffin is expected to reach $3,000 a month.(Photo: Singh Development)

The Griffin's location, walking and bicycling distance to downtown Royal Oak, Ferndale and even downtown Detroit, is a big selling point, said the developer.

“We look at it as not just downtown but suburban-urban, too. People just want to be close to something,” said Avi Grewal, project manager for Singh.

Grewal, calling the trend an “active lifestyle,” said younger people are looking for bars and hip restaurants, while those over 50 tend to be downsizing but want a hip place to live.

Tim Ross, CEO of Ross Mortgage and president of the Woodward Avenue Action Association, a nonprofit that promotes business and preserves heritage along the Woodward corridor from Detroit to Pontiac, said the new luxury apartment developments on Woodward could be bridging a gap between available move-in homes and the number of active buyers.

“Properties that appeal to those ready to downsize are in limited and high demand,” Ross said via email, adding that some buyers are choosing to rent luxury, low-maintenance apartments instead of paying a premium price for a smaller house.

Rents for some small ranches and bungalows in southeast Oakland County reached more than $2,000 a month this summer and the real estate market, while cooling, still remains a seller's market.

Whether more developers will follow Noonan's trend of building right on the busy roadway is unclear. The commercial strip on Woodward is shallow and backs up to neighborhoods, making large apartment developments a challenge.

Grewal has reservations when it comes to developments the size of the Griffin in other spots along Woodward, especially between Royal Oak and Birmingham — but he sees potential: “Maybe you’ll see 10-15 units. I think the market would like that.”

Even Noonan doesn’t see replicating the Woodward in the immediate future. He said the project was only feasible in the last couple of years with the trend in high-end luxury rentals and because client Jonathan Zaidan wanted to expand his OB-GYN practice with an iconic building that had long-term value.

“We’re seeing a whole different trend in housing," Noonan said. “It’s dramatic downsizing of a lifestyle that still maintains a luxury lifestyle."